Stocks Reversing Lower into Afternoon on Global Growth Concerns, China Bubble-Bursting Fears, Emerging Markets/US High-Yield Debt Angst, Commodity/Technology Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Slightly Below Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.62 +4.13%

• Euro/Yen Carry Return Index 141.72 -.3%

• Emerging Markets Currency Volatility(VXY) 9.42 +.64%

• S&P 500 Implied Correlation 57.93 unch.

• ISE Sentiment Index 88.0 +25.71%

• Total Put/Call .90 -17.43%

• NYSE Arms 1.52 -15.86% 

Credit Investor Angst:

• North American Investment Grade CDS Index 71.48 +1.82%

• America Energy Sector High-Yield CDS Index 1,582.0 unch.

• European Financial Sector CDS Index 73.31 -.46%

• Western Europe Sovereign Debt CDS Index 22.66 +1.23%

• Asia Pacific Sovereign Debt CDS Index 63.84 +1.43%

• Emerging Market CDS Index 324.15 +1.87%
  

• iBoxx Offshore RMB China Corporates High Yield Index 121.10 +.01%

• 2-Year Swap Spread 23.75 +.5 basis point

• TED Spread 24.75 +.75 basis point

• 3-Month EUR/USD Cross-Currency Basis Swap -19.75 -.25 basis point

Economic Gauges:

• 3-Month T-Bill Yield .06% unch.

• Yield Curve 150.0 -3.0 basis points

• China Import Iron Ore Spot $55.16/Metric Tonne +4.16%

• Citi US Economic Surprise Index -14.0 +1.4 points

• Citi Eurozone Economic Surprise Index 5.6 -1.5 points

• Citi Emerging Markets Economic Surprise Index -10.3 +1.1 points

• 10-Year TIPS Spread 1.70 -5.0 basis points
• # of Months to 1st Fed Rate Hike(Morgan Stanley) 5.37 +.61

Overseas Futures:

• Nikkei 225 Futures: Indicating -60 open in Japan 
• China A50 Futures: Indicating -448 open in China

• DAX Futures: Indicating -27 open in Germany

Portfolio: 

• Slightly Higher: On gains in my index hedges and emerging markets shorts

• Disclosed Trades: None

• Market Exposure: 25% Net Long